Financials
First Quarter Financial Statement and Dividend Announcement for the Period Ended 31/3/2008
Profit and Loss
Click here for the Full Year 2007 Financials
Review of Performance
Revenue and Profit & LossFor the period ended 31 March 2008 ("1Q2008"), the Group's revenue surged to S$22.9 million, an increase of 358.4% over S$5.0 million in the previous corresponding period ("1Q2007").
The significant increase in revenue was mainly due to the following reasons:
- Contributions from existing businesses in established markets such as China and Other Asian Countries relative to the revenue of S$5.0 million achieved in 1Q2007;
- Contribution of approximately S$2.1 million from Guided Wave Inc ("GWI"), a subsidiary acquired in May 2007;
In 1Q2008, the Group's gross profit of S$5.4 million was achieved on the back of S$22.9 million revenue. This represents a gross profit margin of 23.4%, an increase of 6.1% over 1Q2007.
This improved margin was achieved mainly through enhanced margins in our existing businesses as well as better gross margin contribution from newly acquired GWI.
In line with the Group's revenue growth and business expansion, the distribution cost has increased by S$0.5 million, to S$1.1 million; and administrative expenses increased by S$0.5 million to S$1.5 million.
Balance Sheet
The Group remains in strong financial position with a net cash position of S$58.0 million, an increase of approximately 13.9% from 31 December 2007. The increase in Net operating Cash was mainly due to better collections from trade and other receivables and enables the Group to reduce its trade and other payables.
The net decrease in contract work-in-progress was mainly due to the progress billings made to the customers for the contracts as at 31 March 2008.
Commentary
The Group continues to seek growth opportunities in our business and leverage on our technical and engineering expertise to strengthen our foothold in the markets where the Group has presence in.
The Group continues to target and ride on the strong and continued growth in the Oil & Gas and Petrochemicals & Chemicals Industries in our key markets. The Group has also intensified its efforts and activities in the Clean Energy Division and the Environmental Solutions Division. It is also within the Group's plans to incorporate new offices in China, Europe, Middle East and other parts in the Asia Pacific region to expand and strengthen its geographical reach and markets presence within the next 12-24 months.
As at 31 March 2008, the outstanding orders for the Group were approximately $63.0 million. The Group's order books may not be indicative of its revenue for any successive periods.
Barring any unforeseen circumstances, the Directors expect the Group to remain profitable for its financial year ending 31 December 2008.
Balance Sheet
